Insurance Glossary

Bailee:
Person or concern having the possession of personal property
entrusted to him by the owner of said property.

Bailees Customers Insurance:
A policy that covers the loss or damage to personal property of
customers.

Beneficiary:
The designation by the owner of a life insurance policy that
indicates who will receive the proceeds upon the insured's death
or when a policy endowment matures.

Benefit Period:
The period of time which an insurance company pays benefits to
the named insured or dependents.

Benefits:
Monetary sum payable by the insurance company to a claimant,
assignee, or beneficiary.

Binder:
A written or oral contract issued temporarily to place insurance
in force until a permanent policy is issued. When an oral binder is
issued, you should request a written one to follow.

Binding Receipt:
The (evidence or) receipt given for a premium payment
accompanying an application for insurance.

Blanket Contract:
A policy that covers an insured's property at several different
locations.

Boiler and Machinery Insurance:
Coverage for loss arising out of malfunction, the operation of
pressure, mechanical, and electrical equipment. Most property
insurance policies exclude these types of risks.

Bond:
A three party contract guaranteeing that if the principal fails
to perform as obligated to, the obligee (person whom duty
would be owed), will be financially protected by the issuer of the
bond. We can assist you with your bond needs.

Broker:
One who represents an insured and who may render solicitation,
negotiation, or services that deal with a contract of insurance on
behalf of the insured.

Broker of Record:
Also known as Agent of Record, this is a broker who is
designated to handle certain insurance contracts for the named
insured.

Burglary and Theft Insurance:
Coverage against property losses due to burglary, robbery, or
larceny.

Business Income Insurance:
Provides protection for a business owner against losses resulting
from a temporary shutdown of an insured peril. This provides
reimbursement for lost profits and necessary continuing
expenses. A common exposure that most people have added in
Florida, thanks to Hurricane Andrew.

Business Insurance:
A commercial insurance policy which provides coverage to a
business. Many forms of business insurance are available and
depend on your specific needs.

Builders Risk:
A contract that will insure building contractors for damage to
property under construction. Once erected, the Builders Risk
policy may usually be converted to a specific type of
homeowners or commercial property form.

Business Personal Property:
Known as "contents," this refers to furniture, fixtures, equipment,
machinery, merchandise, and all other personal property owned
by the insured and used in the insured's business.

Buy Sell Agreement:
An agreement made by the part-owners of a business to
purchase the interest of a disabled or deceased owner. Values of
the owner's share of the business and the terms of the buying and
selling are established before death or at the beginning of a
disability.

Important Note: This website provides only a simplified description of coverages and is not a statement of contract. Coverage may not apply in all states. For complete details of coverages, conditions, limits and losses not covered, be sure to read the policy, including all endorsements.